"During today's free-flight test of the Project Morpheus vehicle, it lifted off the ground and then experienced a hardware component failure, which prevented it from maintaining stable flight," NASA officials said in a statement. "No one was injured, and the resulting fire was extinguished by KSC fire personnel."

The Morpheus lander is powered by liquid oxygen and methane propellants, which are safer and cheaper to operate than traditional fuels and can be stored for longer periods in space, NASA officials say. Morpheus is also testing out automated landing-hazard avoidance technology, which would use lasers to spot dangerous boulders or craters on the surface of another world.

Prior to today's free-flight test, the experimental lander was tested in a series of tethered flights at NASA's Johnson Space Center in Houston, as well as one at KSC last Friday (Aug. 3). The Johnson center oversees the project, which has reportedly cost about $7 million over the last 2 1/2 years.

The vehicle could deliver about 1,100 pounds (500 kilograms) of cargo to the moon, NASA officials say. With some modifications, its precision landing system could also be used to help a probe rendezvous with an asteroid in deep space.

Morpheus set off a grass fire at JSC during a tethered test flight in June 2011. Nobody was hurt in that incident, either.